Stellar (XLM) price declined for the second straight day as investors continued to worry about high interest rates, demand, and regulations. The coin is trading at $0.3395, which is the lowest it has been since May 23. It has a market capitalization of more than $7.7 billion and its total ranking has dropped to 19.
Stellar news: For starters, Stellar is a blockchain project that allows people to create digital representations of other currencies like the US dollar and euro. The platform was created by Jeb McCaleb, a co-founder of Ripple.
The network is mostly used in money transfer, microprocessor payments, and asset exchanges, among others. In the past few years, Stellar has become one of the biggest cryptocurrency projects in the world. This is mostly because of the reputation of the platform’s founder. It is similar to how Cardano and Polkadot have become giant cryptocurrencies because their founders were also involved in the creation of Ethereum.
The Stellar price has also risen because of the overall performance of cryptocurrencies and the fear of missing out and the fact that more people have turned to the network. In line with the ongoing crypto sell-off, the XLM price has dropped by more than 55% from its highest level this year. The sell-off accelerated today as the rest of the crypto universe declined.
Stellar price analysis
A look at the daily chart shows that things are not looking good for Stellar lumens price. The coin has managed to drop below the 61.8% Fibonacci retracement level. It has dropped below the 25-day and 15-day exponential moving averages (EMA) while volume has dropped. Therefore, looking at the daily chart, it is hard to see any bullish signs that are emerging.
Therefore, for now, the coin may keep falling as bears target the next key support at $0.236, which is along the 78.6% retracement level. It is about 33% below the current level. This prediction will be invalidated when the price rises above $0.4330.
XLM price chart
Follow Crispus on Twitter.
Read More: Another 33% Drop Can’t Be Ruled Out